WHEREAS, San Juan City is a landlocked highly urbanized city in the National Capital Region that is geographically small but very big in terms of cultural significance, social prominence, economic progress, and tourism potential;
WHEREAS, San Juan is located at the very core of the metropolis with physiography and terrain that could carry almost any type of construction and is free of earthquake damage risks;
WHEREAS many property owners/developers/contractors realize that the City has a potential market for business and development because of its geographical location;
WHEREAS, despite numerous developments that were built in the city, there are instances of complications in the construction that was either insufficient quality control, poor planning or accidents;
WHEREAS, Section 5 of Department of Labor and Employment (DOLE) Department Order No. 13, Series of 1998, Guidelines Governing Occupational Safety and Health in the Construction Industry, provides that “Every construction project shall have a suitable Construction Safety and Health Program, which must be in accordance with these rules, and other orders and issuances issued by the DOLE”;
WHEREAS, Section 308, Chapter 2 of the National Building Code states that “The owner of the Building who is issued or granted a building permit under this Code shall engage the services of a duly licensed architect or civil engineer to undertake the full-time inspection and supervision of the construction work…”.
WHEREAS, Article 1723 of the Civil Code states that "The engineer or architect who drew up the plans and specifications for a building is liable for damages if, within fifteen years from the completion of the structure, the same should collapse by reason of a defect in those plans and specifications, or due to the defects in the ground. The contractor is likewise responsible for the damages if the edifice falls, within the same period, on account of defects in the construction or the use of materials of inferior quality furnished by him, or due to any violation of the terms of the contract. If the engineer or architect supervises the construction, he shall be solitarily liable with the contractor…"
WHEREAS, Section 16 of the Local Government Code of 1991 provides that every local government unit shall exercise the powers expressly granted, those necessarily implied therefrom, as well as powers necessary, appropriate, or incidental for its efficient and effective governance, and those which are essential to the promotion of the general welfare;
WHEREAS, it is imperative for the legislative body to arbitrate and penalize all person/s or juridical person/s found accountable to the damage caused by a construction defect or accident of any completed or ongoing, started development project in the City of San Juan, Metro Manila.
NOW THEREFORE BE IT ORDAINED, AS IT IS HEREBY ORDAINED, by the Sangguniang Panlungsod of the City of San Juan, Metro Manila, in a session duly assembled, THAT:
SECTION 1. TITLE. This Ordinance shall be known as “AN ORDINANCE PENALIZING THE CONTRACTOR OF ANY ONGOING OR COMPLETED DEVELOPMENT PROJECT, AND IN THE ABSENCE THEREOF, THE OWNER/DEVELOPER, THAT HAS CAUSED DAMAGE TO ADJOINING/ADJACENT PRIVATE AND PUBLIC PROPERTIES AND UTILITIES DUE TO CONSTRUCTION DEFECT OR ACCIDENT WITHIN THE TERRITORIAL JURISDICTION OF THE CITY OF SAN JUAN, METRO MANILA”
SECTION 2. PURPOSE – This Ordinance is enacted to penalize all person/s or juridical person/s found accountable for the deficiency in a building project of any ongoing or completed development project that caused damage to third party properties in the City of San Juan, Metro Manila.
SECTION 3. DEFINITION OF TERMS- As used in this Ordinance, the following terms shall be construed to mean as follows:
1. Owner- a person or corporation who develops and owns the property.
2. Contractor – a person or corporation and firm duly registered and licensed by the Philippine Contractors Accreditation Board.
3. Construction Defect- refers to a deficiency in the construction process – be that in design, materials, or workmanship – which leads to a failure in some aspect of the structure being built, and that causes damage to a person or property (financial or otherwise).
4. Adjacent/Adjoining properties- Adjoining dwelling-houses, adjoining flats, adjoining rooms for residential purposes, and adjoining buildings are those in direct physical contact with another dwelling-house, flat, room for residential purposes or building.
5. Completed Development Project- refers to a development project already ready for occupancy or is already being occupied for all aspects of the development project has been carried out.
6. On-Going Development Project- refers to a development project that is not yet completed, or is still undergoing, or will undergo the process of carrying out the development project to its full completion.
SECTION 4. SCOPE- This Ordinance shall apply to all owners, developers, and contractors of any ongoing or completed development project that has caused damage to adjoining/adjacent properties due to construction defect or accident within the territorial jurisdiction of the City of San Juan, Metro Manila
SECTION 5. IMPLEMENTING AGENCY-The City Building Official in coordination with Local Zoning Administrator Officer of the City Government of San Juan shall ensure the strict and faithful enforcement or implementation of this Ordinance.
SECTION 6. PENALTIES- Violation of this Ordinance shall be meted the following penalties:
A. Owner/Developer and the Contractor, who is in charge of the construction or the development project, shall be imposed of a fine of Five Thousand Pesos (P5,000.00) without prejudice to the filing of the appropriate civil case for the collection of damages.
Damages done by owner/developer and the contractor to public property and/or utilities shall be restored immediately to its former condition within forty-eight (48) hours from the time it was damaged.
However, if the damaged property is a public building, payment for its damages shall be subject to an assessment of the City Engineer and approval of the City Mayor.
In addition to the penalty stated above, the Building Official shall arbitrate between the owner/developer and the contractor and the adjacent/adjoining property owners to determine cost payment of damages caused by the construction defect or accident.
The settlement of dispute arbitration shall be reported to the Sangguniang Panlungsod of the City Building Official.
B. Administrative Sanctions-Any City or Barangay official, directly or indirectly, who actually failed to report the construction defect or accident shall be held administratively liable subject to a filing of an appropriate complaint to the Sangguniang Panlungsod.
SECTION 7.The City Treasurer is tasked to collect all penalties due to the owner/developer or the contractor who was assessed, evaluated, confirmed and recommended by the City Building Official as liable to the provisions of this Ordinance.
SECTION 8. SEPARABILITY CLAUSE – If for any reason, any section or provision of this Ordinance is declared unconstitutional or invalid by a competent court, the remaining sections or provisions not affected thereby shall continue to be in full force and effect.
SECTION 9. REPEALING CLAUSE – All Ordinances contrary to or inconsistent with any of the provisions of this Ordinance are hereby repealed and/or modified accordingly.
SECTION 10. The authority, issuance, and approval hereof is subject to and conditioned upon compliance to certain restrictions and to all existing laws, circulars, rules, and regulations.
SECTION 11. EFFECTIVITY – This Ordinance shall take effect upon approval and after publication in a newspaper of general circulation.